FRM 1. Building Blocks of Risk Management: LOs

a) Explain the concept of risk and compare risk management with risk taking.

b) Evaluate, compare and apply tools and procedures used to measure and manage risk, including quantitative measures, qualitative risk assessment techniques, and enterprise risk management.

c) Distinguish between expected loss and unexpected loss and provide examples of each.

d) Interpret the relationship between risk and reward and explain how conflicts of interest can impact risk management.

e) Describe and differentiate between the key classes of risks, explain how each type of risk can arise, and assess the potential impact of each type of risk on an organization.

f) Explain how risk factors can interact with each other and describe challenges in aggregating risk exposures.